CHART ALERT: Quiet gold market primed for break-out price move

The gold market has been uncharacteristically calm this year with the metal hovering either side of $1,300 for the better part of two months.

In a recent research note Edel Tully and Joni Teves, analysts at investment bank UBS, argued that the quiet on the gold market may be a good thing:

"Gold is not on the radar for many, and with broad expectations that prices will be range-bound this year, many investors are opting to stay out of this market," UBS wrote. "That is probably gold's biggest positive right now."

The thinking being that too much attention from speculators and any big economic news would automatically be seen as a negative given current gold market sentiment.

"This is an alert. The gold price has formed a triangle type pattern and is dropping out of it, plus the moving averages have converged with price. This type of action invariably precedes a sharp move."

Frik is editor and writer for MINING.com. Frik has worked as a financial journalist for 15 years appearing in a number of business and consumer publications including British Airways in-flight magazine, Business Insider, Fin24.com, Driving.ca, YCharts and Business in Vancouver. Frik was a speaker at the 2014 Global Mining Summit in Las Vegas and the Mine Lifecycle Management conference in Salt Lake City.
(DISCLAIMER: Frik Els does not own shares or hold positions in any of the equities he writes about. Nothing written should be construed as a solicitation to buy or sell any securities. Seek the advice of a broker/dealer first.)